Activists pick holes in MP power project

In spite of protests and demand for a White Paper on the controversial and only private power project in MP, Shree Maheshwar Hydel Power Project, the company is upbeat on the project and claims to execute and commission it before 2009.

On the one hand, Narmada Bachao Andolan (NBA) allegations are not new, on the other, the company is unfazed by allegations.

Narmada Bachao Andolan yesterday took out a rally against the 400-Mw project in Bhopal. Activist Alok Agrawal raised issues of techno-economic clearance (TEC), rehabilitation and resettlement plan and misuse of funds.

He alleged the company had not obtained techno-economic clearance for the project so far. Moreover, the Central Electricity Authority and the Madhya Pradesh Electricity Regulatory Commission have not approved the TEC of the project.

Further, he said the Rs 2,450-crore project would serve no purpose since power rates from the project would be very high--not less than Rs 8 per unit to the consumer.

"The oustees have been repeatedly demanding that the surveys to assess the actual extent of submergence up to the full reservoir level and further up to back-waters should be done by the Central Water Commission (CWC), as happened in case of the India Sager Project (ISP)," Agarwal said.

The NBA also condemned the government for providing escrow cover to the project.

"The Madhya Pradesh State Industrial Development Corporation has given a huge amount of money to the holding company of the Shree Maheshwar Hydel Power Corporation Ltd--the Indus Ameritech Ltd--now known as Integra Infrastructure for the Maheshwar Project, setting aside the rules, regulations and legal requirements...the state government has not only given a guarantee to this project for the issue of bonds, but it is also in the process of dedicating the revenue collection from the high yielding Jabalpur and Narasinghpur revenue collection centres for escrow guarantee to the project," the NBA said.

Responding to allegations ML Gupta, managing director of the project said, "We need not re-obtain the TEC on day to day basis on the project. This is a peaking project and power tariff will be high obviously, however it will not be more than Rs 3.30 per unit when the project will be completed by 2009."

He also said, "Rehabilitation and resettlement plans are under progress, we will have to compensate 9459 members of more than 18 years of age. They will be given land also. However our case is different from ISP. Our submergence is only half-a-meter more than full reservoir level (FRL) and in any case we will take land for FRL."

On allegations of escrow cover and misuse of funds he said, "The escrow cover is a counter guarantee against the bonds of Rs 400 crore issued through private placement. My company has nothing to do with it."